AN ORDINANCE PERTAINING TO THE LICENSING OF RENTAL PROPERTIES; AMENDING CITY
CODE SECTION 29A-29 AND SECTION 29A-34, DECLARING MORATORIUM

BY COUNCILOR STAUBER:

The city of Duluth does ordain:

Section 1.That Section 29A-29 of the Duluth City Code, 1959, as
amended, be amended to read as follows:

Sec. 29A-29.Licenses--application, procedure.

(a)All licenses shall be issued by the building official.
Applications for licenses shall be made by the owner or manager of
the dwelling to the building official upon forms provided by such
official, and such applications shall be accompanied by the
required license fee. Applications for renewals of licenses and
licenses for new dwellings shall be made at least 60 days prior to
the time the current license will expire or the units will be
offered for rent. Upon receipt of a completed application and
fees the building official shall issue a temporary license
permitting the temporary rental of the dwelling until such
dwelling has been inspected by the building official. New
dwellings, dwelling units, housekeeping units, rooming units or
rental units which comply with the State Building Code shall be
issued a license upon completion of construction inspections
issuance of a certificate of occupancy and receipt of a completed
application and fees by the building official. Buildings which
comply with the State Building Code and have been completed and
certified for occupancy by the building official within one year
of the certification of occupancy and receipt of a completed
application and fees by the building official shall also be issued
a license for the initial licensing period without further
inspection. All other multiple dwellings, rooming houses and
rental units shall be inspected before a license is issued. If the
inspection by the building official discloses that there are
violations in the building, the temporary license may be extended
for a reasonable period of time, not to exceed 120 days, so that
the violations can be corrected and the building reinspected by
the building official. The building official shall not extend a
temporary license more than twice. No license shall be issued
unless the premises or portions of the premises to be licensed
have been found by the building official to comply with the
provisions of this Chapter and all other applicable ordinances of
the city. If only a portion of a building is licensed, no
unlicensed portion shall be rented. Renting any unlicensed
portion of a building shall result in revocation of the license
and issuance of a notice to vacate the building;

(b)If, after issuance of a temporary license for an
establishment, the building official is denied access to such
establishment, or any portion thereof, at any reasonable time
while attempting to inspect the premises, the building official
may revoke such temporary license upon written notice to the
applicant, subject to the applicant's right to appeal as provided
in this Article;

(c)In addition to the requirements set forth above, no
rental license, except a temporary rental license, shall be issues
for any dwelling unless a certificate of noncontribution as
provided for in Section 43-33.2 has been issued for that dwelling;

(d) For the purpose of ensuring all units in the city of
Duluth that as of the effective date of this ordinance are being
used for rental units are properly licensed, a 30 day amnesty
period is being established when the following conditions exist:

(1)A single family residential unit is being used
as a rental property as previously defined. The owner or manager
of the property shall present to the city proof of this in the
form of documentation of either a rental or lease agreement or
similar instrument that is signed in the original and dated by
those renting and with a rental term that commenced prior to
October 1, 2007;

(2)The owner of the dwelling does not have a
current or temporary rental license and has never had one for that
property that was revoked;

(3)The owner secures payment to the city of fees
required by code, including penalty fees calculated by the city,
in an amount equal to the required fees for the number of years
the property has been rented without a license. No penalty will
be less than the three year fee;

(4)This amnesty will only be allowed from the date this
ordinance becomes effective until 30 days after that date;

(5)All other conditions required for licensing are met
including off street parking requirements as set out in this Code.

Section 2. That Section 29A-34 of the Duluth City Code, 1959, as
amended, be amended to read as follows:

Sec. 29A-34.Notices.

No license shall be issued pursuant to this Section unless
the applicant designates in writing to the building official at an
address located in the city of Duluth where notices issued by the
building official may be delivered. All notices issued by the
building official regarding a particular license shall be sent by
first class mail or personally delivered to the address specified
by the licensee, and for purposes of this Article delivery by such
means shall constitute service of such notice on the licensee.

Any person who receives an order from the building official
denying, suspending or revoking a license may appeal such denial,
suspension or revocation to the building appeal board under the
procedures set forth in Section 10-5 of the Duluth City Code,
1959, as amended. Request for such appeal shall be made in
writing to the building official within 15 days after the day the
notice was served. If an appeal is filed, no denial, suspension
or revocation shall take effect until after the appeal is heard
and determined as provided herein. The building official shall
then set a time and place for such appeal to be heard and notify
the appellant of said time and place. No appeal shall be set for
hearing less than ten days or later than 40 days from the date the
appeal is filed. At the hearing, appellant may be represented by
counsel, may produce witnesses, and may testify in their own
behalf. The building appeal board may administer oaths, take
testimony and subpoena witnesses and papers at such hearing.
After hearing all the evidence and arguments, and after due
deliberation, the building appeal board shall affirm, reverse or
modify the action of the building official. Notice of the
building appeal board's decision shall be served on the appellant
within 48 hours after such decision is rendered. Any action taken
by the board shall be final.

For a period that ends 30 days after this ordinance takes
effect, no order to vacate (eviction) shall issue regarding a
property that is single family home converted to rental units and
for which there is currently no proper rental license in force,
and the property would qualify to be licensed except that it does
not conform to the 300 foot density rule of Section 29A-32(f).

Section 3.That this ordinance shall take effect 30 days after its
passage and publication.

STATEMENT OF PURPOSE: This ordinance was created to allow owners of single
family homes that are being used as rentals without proper licensing to apply
for a license regardless of the 300 foot rule if they can prove they were
being used for rental prior to October 1, 2007. Penalties for failure to
license will be implemented based on the length of time they have been in
violation. The ordinance also includes council approval of a moratorium on
evictions while this action to license takes place.